During the holidays, spending on gifts, travel and more can run up your credit card debt. With January right around the corner, those bills are coming due sooner rather than later.
The holidays show how Americans are once again relying more on their credit cards. The average household has $16,061 in credit card debt, just below the high water mark of $16,911 set in 2008, according to personal finance site NerdWallet.
"Debt is a big problem for many Americans, " NerdWallet's Sean McQuay told CNBC's "On The Money" in an interview, obligations he said many try to ignore. "It's shameful, no one wants to talk about that, no one wants to admit to themselves that they're in that bucket. "
So how do you reduce your credit card debt?
"Make sure you're paying your minimums and try to pay more than the minimums," said McQuay, who's NerdWallet's Credit and Banking Expert. He added you should also "set aside any bonus money or tax refunds" to whittle down those balances.
While it seems counter intuitive, McQuay suggests a strategy of taking on more credit with a new credit card—which could help you to pay down the debt you have now.
"If you're lucky enough to qualify for one of those balance transfer cards, it can be a great option," McQuay said. "Those cards allow you to postpone interest payments for that debt for 12 to 21 months, which can really create a lot of breathing room to help pay that (debt) down," he added.